BAKU, Azerbaijan, December 29. Legal entities
and individuals conducting activities in Azerbaijan’s liberated
territories and registered in the centralized system will also be
considered residents of these territories and will be able to enjoy
benefits, Trend
reports.
This issue has been reflected in the law on amendments to the
Tax Code, approved by the President of the Republic of Azerbaijan,
Ilham Aliyev.
According to the document, for taxation purposes applicable in
territories liberated from occupation, residents of these
territories are defined as legal entities and individuals
registered for tax purposes in these territories, either through a
centralized system, and directly conducting activities in the
specified territories.
Under current legislation, residents of territories liberated
from occupation are exempt, for a period of 10 years starting from
January 1, 2023, from profit (income) tax, property tax, land tax,
and simplified tax.
For residents of territories liberated from occupation who are
registered for VAT purposes, the import of machinery, technological
equipment and installations, as well as raw materials and supplies
according to types of economic activity and product nomenclature,
as listed by the authority (institution) designated by the relevant
executive body, is exempt from VAT for 10 years starting from
January 1, 2023. The provisions of this article apply based on a
confirming document issued in accordance with the procedure
established by the authority (institution) designated by the
relevant executive body.
Dividend income of shareholders of legal entities who are
residents of territories liberated from occupation is exempt from
taxation for 10 years starting from January 1, 2023.